Daily Personal Finance Insights – Illogical prices
A new report from Bayt Jobs indicates 46% of UAE respondents to a survey, carried out by YouGov, say that there has been no change to their personal finances in the past six months, while 22% claim there has been an improvement; almost half (49%) say that their savings have depleted in comparison to last year.
A large number of UAE respondents (48%) said they are not considering buying a personal vehicle in the next 12 months. Of the 39% who claim they are looking to make a purchase, 45% will choose to buy a new vehicle, while 46% will opt for a used one. In terms of property, only 23% are looking to invest; and the majority of those respondents will be buying new apartments.
Takaful needs overhaul
Qatar Financial Centre Authority has released a new annual report the ‘MENA Insurance Barometer.’ The report states: “The prospects of Takaful insurance are viewed critically. Only 38% of respondents expect this market segment to outgrow total insurance premiums. Business models for Takaful insurance are believed to be in need of a thorough review.”
Luc Metivier, CEO, ACR Retakaful was quoted as saying: “The limited take-up of life insurance, shariah-compliant and conventional, in the MENA region is not simply a result of cultural or religious reservations. It also reflects the industry’s deficits in offering policyholders the right products through the right channel. ”
Illogical consumer goods price increases
The UAE Ministry of Economy's sub-department, the Consumer Protection Department has carried out an analytical study by the higher consumer protection committee. The study: “highlighted a raft of measures, taken by the Department including intensive field tours of markets and outlets, to mitigate the impact of illogical increases in prices of many consumer commodities.” Minister of Economy Sultan bin Saeed Al Mansouri acknowledged that tremendous challenges were awaiting the Committee, but also hoped: “the current year would see a qualitative leap in handling issues, price hikes and inflation in line with the consumer's expectations.”
Travel and tourism significance to the UAE
The total contribution of Travel & Tourism to GDP was AED193.6bn (14.3% of GDP) in 2012, and is forecast to rise by 3.2% in 2013, and to rise by 5% per year to AED 325.4bn in 2023 according to a new report by The World Travel & Tourism Council.
In 2012, the total contribution of Travel & Tourism to employment, including jobs indirectly supported by the industry, was 11.3% of total employment (383,500 jobs). This is expected to rise by 2.6% in 2013 to 393,500 jobs and rise by 3.9% per year to 575,000 jobs in 2023 (13.1% of total)
Visitor exports generated AED 121.1bn (9.7% of total exports) in 2012. This is forecast to grow by 4.9% in 2013, and grow by 5% per year, from 2013-2023, to AED 207.1bn in 2023 (9.8% of total).
Travel & Tourism investment in 2012 was AED82.8bn, or 23.2% of total investment. It should rise by 11.7% in 2013, and rise by 4.5% per year over the next ten years to AED 143.4bn in 2023 (23.2% of total).